Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum

Just before the end of the year, the crypto market continues to take a beating. After the initial green start of the last week of 2021, prices have only been going down.

This rout further extended to late Wednesday and early Thursday when Bitcoin price dipped further just under $45,900 and Ether to about $3,585. As of writing, BTC/USD has been trading above $47k while Ether is also over $3,700.

While the leading cryptocurrency is down 31.6% from its $69,000 all-time high early last month, Ether is only down about 24%. This month, however, Bitcoin is down 17.5% compared to ether’s almost 20%, according to Skew.

But while Bitcoin managed to record losses less than Ether, the latter’s 2021 gains at 407% are still greater than Bitcoin’s only 60%.

“It’s not really that clear to the world at large, to the mainstream, that what’s really happening with Bitcoin, with Ethereum, with this whole bucket of technologies…is really a revolution in software development,” said Coinlist CEO Graham Jenkin in an interview. “Blockchain technology represents a totally new way to build, distribute and run software.”

The largest cryptocurrency has shown a positive correlation with the S&P 500 Index this year. But this week, S&P 500 rose to new highs while Bitcoin has only been recording losses.

With the subdued price action, the cryptocurrency’s volatility has also decreased. Even during the winter festive season and weekends, which have seen thin volume, the cryptocurrency has failed to have any wild swings.

“A lot of traders have made life-changing money in 2021 and have been waiting to take profits until after the turn of the year to delay tax payments until 2023,” said Sergio Silva, sales director at Fireblocks. “That’s another source of selling pressure that could cascade into additional weakness in January.”

But despite the ongoing weakness in the crypto market, exchange-traded fund investors (ETF) are still putting money into these products.

The ProShares Bitcoin Strategy ETF (BITO), the first Bitcoin futures ETF that started trading in October, has attracted more than $40 million in December for the third straight monthly inflows.

Investors have also poured in $6.5 million into another futures ETF, the Valkyrie Bitcoin Strategy ETF (BTF), since the end of last month, its third consecutive month of inflows as well.

2021 belongs to altcoins and not Bitcoin or Ether. The biggest gainers this year have been the NFT pay-to-earn (P2E) game Axie Infinity (AXS) whose gains have been more than 15,900%, and the NFT-based virtual world The Sandbox (SAND), whose returns have been 15,550%. AXS 1.17% Axie Infinity / USD AXSUSD $ 94.97
$1.111.17%
Volume 180.63 m Change $1.11 Open $94.97 Circulating 60.91 m Market Cap 5.78 b
10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 1 d South Korean Exchange Suspends Withdrawals to External Wallets, Govt. Reaches Out to Apple and Google to Block P2E Apps 2 d Axie Infinity Daily Revenue Plunges Over 94% from Peak as Daily Active Addresses Drops by 72%
SAND 1.32% The Sandbox / USD SANDUSD $ 5.91
$0.081.32%
Volume 1.16 b Change $0.08 Open $5.91 Circulating 919.5 m Market Cap 5.43 b
9 h The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 6 d Is This The Beginning of the Santa Rally? Markets Jump in Asia Session

Ethereum killers have been another good play of 2021, with Polygon (13,860%), Terra (12,960%), Fantom (12,260%), and Solana (9,320%) leading this rally.

MATIC 3.24% Polygon / USD MATICUSD $ 2.56
$0.083.24%
Volume 1.93 b Change $0.08 Open $2.56 Circulating 7.16 b Market Cap 18.32 b
7 h StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNet 9 h The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum
LUNA 1.41% Luna Coin / USD LUNAUSD $ 0.01
$0.001.41%
Volume 0 Change $0.00 Open $0.01 Circulating 1.71 m Market Cap 13.68 K
10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 2 d UST Grows 55x to Become the 4th Largest Stablecoin, Terra DeFi Ecosystem Amasses $18B in Assets 6 d Is This The Beginning of the Santa Rally? Markets Jump in Asia Session
FTM -1.91% Fantom / USD FTMUSD $ 2.10
-$0.04-1.91%
Volume 607.67 m Change -$0.04 Open $2.10 Circulating 2.55 b Market Cap 5.34 b
10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 3 d Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 3 w ETHBTC Hits New 2021 High, Dogecoin and Ethereum Price Leading Google Trends in 2021
SOL 0.92% Solana / USD SOLUSD $ 172.53
$1.590.92%
Volume 1.51 b Change $1.59 Open $172.53 Circulating 309.48 m Market Cap 53.39 b
10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 1 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 w Crypto Outliers: Terra (LUNA) Amasses $16.9 Bln & Surpass BSC, Avalanche (AVAX) Aims for 1 Million Daily Transactions

“While Bitcoin showed strength in 2021, we’ve seen a constant stream of capital trickling down into altcoins,” Arcane Research wrote in a note. The firm’s analysts predict the strongest momentum in tokens related to GameFi and the metaverse, along with “ETH-killers” targeting Ethereum.

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Author: AnTy

“Extreme Fear” in Crypto As The Market Weakens on Monday on Expectations of “Aggressive Tightening”

The price action faltered after the initial risk-on with all eyes will be on the consumer price report due on Friday. The USD index is near its 17-month high and dollar long positions highest since June 2019.

Last week, the market was spooked by the mixed US jobs report that has investors now expecting a more aggressive tightening by the Federal Reserve.

US payrolls were underwhelmed in November, but at the same time, there was a 1.1 million jump in jobs that pushed unemployment down to 4.2%.

“We think the Fed will view the economy as much closer to full employment than previously thought,” said Barclays economist Michael Gapen.

“Hence, we expect an accelerated taper at the December meeting, followed by the first rate hike in March.”

This week all eyes will be on the consumer price report due on Friday. The key US inflation figure will tell the market more about the early tapering and increase in interest rates.

As Omicron emerged in more countries, Asian share markets had a cautious start on Monday. While the new COVID-19 variant remains a concern, there are reports that cases had mild symptoms.

There was slight risk-on price action in the new week that saw crypto assets recording a small uptick. After momentarily going for $49,455, Bitcoin slid back down towards $47,000. As for Ether, it is back under $4k after recovering to $4,255 over the weekend.

The total crypto market cap is still struggling under $2.3 trillion as the sentiments turn to “extreme fear,” at a level not seen since July.

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In the global stocks market, Japan’s Nikkei eased some despite the government considering raising its economic growth forecast to account for a record $490 billion stimulus package.

On Wall Street, after the worst start of December in two decades, S&P 500 added 0.4%, and Nasdaq futures 0.1%.

But with the Fed turning increasingly hawkish, BofA chief investment strategist Michael Hartnett is bearish on equities for next year as he expects a “rates shock” and a tightening of financial conditions while favoring real estate, commodities, volatility, and cash.

Short-term Treasury yields are now being pushed higher. Ten-year U.S. yields also rose off but are still down from 1.669% two weeks back.

The USD index remained around 96.25, near the 17-month high of 96.9, which it hit in late November. As we reported, dollar-long positions have also climbed to the highest since June 2019.

“We expect the dollar to rise as markets price in more rate hikes,” said Commonwealth Bank of Australia strategist Kim Mundy.

“This week’s November CPI data could trigger markets to price in a more aggressive tightening cycle.”

Much like risky assets, gold has also been getting hit since mid-November, when it was around $1,875 per ounce to slide down to $1,760 on Friday. Currently, the bullion is trading under $1,780.

The safe-haven yen has also eased some with the cautiously brighter mood this Monday, though a bumpy ride ahead looms with Omicron and U.S. inflation data. Next week the Fed, European Central Bank (ECB), Bank of England (BOE), and Bank of Japan (BOJ) will be meeting.

“Omicron headlines are moving in the right direction, and the risk-off sentiment may ease off soon,” said analysts at OCBC Bank in Singapore.

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Author: AnTy

Coinbase Gets a ‘Buy’ Rating With A $400 Target Price as COIN Follows Bitcoin & Ether

With the initial negativity “flushed out,” COIN shares price is expected to rally as it moves in a “strong correlation” to the top crypto asset. Amidst this, the company’s head of the capital-markets group has left within just four months of taking the role.

DA Davidson analyst Christopher Brendler has given cryptocurrency exchange Coinbase a ‘Buy’ rating and a $400 target price.

As of writing, COIN shares have been trading at $280.58, up 24% from earlier last week. However, it is still down about 35% from its $429.54 peak, briefly hit on its debut day on Nasdaq on April 14, marking the top for Bitcoin price at the time.

Coinbase will be reporting its earnings this week, and this is expected to give it a further boost, now that the initial negativity has “flushed out,” according to Blue Line Capital founder and President Bill Baruch, who expects the platform’s verified users to exceed 60 million.

As COIN share price comes off of a good turn line support and having broken out of a wedge of resistance, Baruch expects the price to rally to $290-$300.

Correlation with Bitcoin & Ether

Coinbase basically continues to act as a beta play on the Bitcoin and cryptocurrency market.

“It’s a very rough proxy” based on the fact that, historically, “strong correlation” has been seen between Bitcoin and some of Coinbase’s most important operating metrics such as monthly transacting users, said BTIG’s Mark Palmer, who has a buy rating on Coinbase and a $500 price target.

BTC, along with Ether and the broad crypto market, has been trending up since July 21st. In the past two weeks, BTC has gone up 23%, Ether 42%, and the total crypto market cap has jumped over 26% during this period.

However, unlike Coinbase, which is bound to the trading pattern of the traditional markets, crypto trades 24/7.

According to Jerry Braakman, CIO of First American Trust, which manages $2 billion, it makes sense that Coinbase is correlated to the price of Bitcoin and Ethereum because the platform’s business model is “leveraging that value for revenue.”

However, Coinbase’s dependency on the leading cryptocurrency as a source of revenue has been declining, noted BTIG’s Palmer. Bitcoin represented about 44% of the exchange’s transaction revenue last year, down from 60% in 2019. He said,

“What we fully anticipate is that as Coinbase continues to diversify its platform by adding additional coins, which it’s been doing at a much quicker pace of late, and builds out its institutional prime brokerage platform, that correlation should recede.”

Capital-Markets Head has Left

Amidst all this, Brett Redfearn has left Coinbase within just four months of taking the role of the head of the platform’s capital-markets group.

Redfearn, a former official at the SEC who joined the exchange earlier this year, resigned from the firm in late July after Coinbase decided to shift its priorities away from digital-asset securities, according to the people familiar with the matter.

Just last week, Brian Brooks stepped down as the CEO of competing exchange Binance.US, the US-based entity of leading cryptocurrency exchange Binance Holdings, just three months after taking up the role due to “differences over strategic direction.”

Before becoming the head of OCC from May 2020 to January 2021, where he led efforts to provide regulatory clarity for stablecoin and digital asset custody, Brooks was the Chief Legal Officer at Coinbase.

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Author: AnTy

Robinhood’s IPO Pushed Back As SEC Delays Approval

Robinhood’s IPO Pushed Back As SEC Delays Approval

The initial public offering (IPO) of stock trading platform Robinhood Markets LLC is being slowed.

According to a Bloomberg report, several people familiar with the matter say the Securities and Exchange Commission has been delaying its review in recent weeks.

SEC Scrutinizes Robinhood’s Crypto Arm

Per the report, the approval has been delayed because the regulator is reportedly looking closely at Robinhood’s growing cryptocurrency business.

The report says the two parties have had extensive discussions about the firm’s IPO prospectus with the regulators particularly concerned about the crypto arm.

Robinhood started cryptocurrency trading on its platform in 2018, before expanding it in 2021. The platform now has a wide range of cryptocurrencies including Bitcoin, Ethereum, Dogecoin, and others.

The firm had earlier planned for a June listing after its filing in March 2021, before shifting to July 2021–which is not certain.

Nevertheless, Robinhood says it would reveal its financials and go public once the SEC finally finishes its review.

Founded in 2013 and headquartered in California, Robinhood is known for offering commission-free trades of stocks and exchange-traded funds.

Robinhood’s Rise To Fame

Robinhood soared in popularity last year. The firm’s rapid rise to prominence was preceded by the GameStop short-squeeze controversy in January 2021.

The broker had halted trading of Gamestop stocks on its platform alongside shares of AMC Entertainment and Blackberry.

This did not sit well with retail traders as the company received public backlash over it. The company later lifted Gamestop restrictions saying they did so to guard against market manipulation.

In terms of revenue, Robinhood has had a good run this year. The brokerage firm made $331 million in payment in the first quarter of 2021, according to an SEC filing.

Out of the payments, $133 million was made from equity trades while $198 million came from options trading. Robinhood’s crypto customers also rose to 9.5 million during the first quarter of 2021.

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Author: Jimmy Aki

Decentralized Storage Network Filecoin to Launch Mainnet on Oct 15th; Raised $200M In 2017

Three years following its successful initial coin offering (ICO) approximated at $205M, Filecoin has finally confirmed that its long awaited mainnet launch is set for mid next month.

In a blog post from the team, the decentralized storage platform stated that the mainnet will be rolled out on Oct.15. The firm also revealed that the network will go live at block 148,888.

The platform is designed as a blockchain rival to Amazon Web Service as well as Cloudflare. The platform conducted one of the most successful ICO’s in history raising $205 million.

Dubbed decentralized dropbox, Filecoin is seeking to end the overreliance on the third-party hosting services used by companies such as Microsoft or Amazon. This will be advantageous to users as their content will not be monitored, like is the case with Dropbox, all information within the Filecoin platform will be encrypted making monitoring impossible.

The upcoming launch will end speculation in regards to years of delay. The firm had forecasted that its testnet would be launched by the end of 2018 while the mainnet was set to go live by 2019. The team then revised its estimation saying that the testnet was to be launched in the spring of last year while the mainnet would be launched by end of last year.

Filecoin was finally able to release its testnet in December last year. At that moment, the firm explained that the mainnet was set to be launched in March this year. Now, almost an year after the launching of the testnet, the firm has announced the mainnet will be launched mid next month.

All signs show that Filecoin is set to meet the expectations. On Aug. 24, the team released an incentivized testnet which is a sign that the platform is at the final stages of its design and development.

However, the team is facing challenges as an infuriated group of miners as well as venture capitalists in China are threatening to fork the platform before it can be officially launched. The group are of the view that they might be underpaid if the mainnet goes live. Protocol Labs, the firm behind Filecoin, had earlier released a paper stating that about 80% of miners could be rendered unprofitable.

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Author: Joseph Kibe

SEC Hits eSports Platform With $6.1M Penalty For An Unregistered ICO; Hester Peirce Dissents

Quick Read:

  • SEC charges the e-sports gaming platform, Unikrn, for “conducting an unregistered initial coin offering (ICO)” in 2017.
  • The e-sports firm agreed to pay a $6.1 million fine without admitting or denying the charges.
  • Notable investors include Shark Tank & Dallas Mavericks Owner Mark Cuban, Ashton Kutcher, and Ethereum Co-Founder Anthony Di Lorio.
  • SEC Commissioner, Heister Pierce, filed a statement of dissent stating the company was not charged for any fraud.

On September 15, the U.S. Securities Exchange Commission (SEC) charged Seattle-based eSports gaming firm, Unikrn, for conducting an unregulated ICO between June and October 2017. The statement from SEC claims Unikrn made an ICO raise of $31 million from selling its native UnikoinGold (UKG) token, promising to add more features to the gaming platform and providing more utilities to the UKG token.

However, three years ago, the authorities find the sale of UKG as a violation of registration laws. SEC finds Unikrn guilty of not registering the token through it as UKG represents an investment contract. The statement reads,

“The order finds that Unikrn offered and sold UKG as investment contracts, which constituted securities, yet failed to register the offering or qualify for an exemption.”

According to Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit, failure to follow the registration laws impedes the market rules hence “harming investors and [the] markets.”

Unikrn has since accepted to pay the $6.1 million penalty imposed by the SEC – a substantial amount of all company funds – without admitting or denying any wrongdoings. The fine will then be distributed to all UKG investors through a Fair Fund. Unikn also agreed to disable any buying, selling, and use of the UKG token by Sept. 25th. Littman said,

“This resolution allows us to return all of Unikrn’s assets substantially to already-harmed investors and includes measures to prevent future sales to retail investors, including the disabling of the tokens.”

Speaking to Coindesk, Rahul Sood, CEO of Unikrn, said they had been working with the SEC to find a resolution on moving the business forward. He further stated the discontinuation of UKG services would help the company focus on building better products in the future. He said,

“The common ground we found requires Unikrn to completely stop supporting UKG and help provide a fund for purchasers of UnikoinGold. This gives us clearance to focus on continuing to build our industry-leading business.”

Crypto mom files statement of dissent

SEC Commissioner and crypto enthusiast, Hester Peirce, also known in the crypto space as Crypto Mom, filed a statement for dissent on the charges SEC found in Unikrn. Pierce states the company did not commit any fraud during its ICO – only a registration offense was committed. Despite condemning registration offenses, Crypto Mom claims such enforcement actions could lead to stifling of innovation in the crypto arena.

“Registration violations, even standing alone, are serious, and our enforcement actions can serve to deter such violations and protect harmed investors,” she said.

“We should strive to avoid enforcement actions and sanctions, however, that enervate innovation and stifle the economic growth that innovation brings. I believe that this action and its accompanying sanctions will have such consequences.”

Furthermore, she disagrees that UKG token sale constituted as a security because the SEC has not placed clear guidelines for entrepreneurs and businesses to follow in token sales. The securities regulator is lagging behind in implementing laws that set a dilemma for several innovators – choosing whether to drop the project or continue developing with a dark cloud of enforcement hanging over their heads.

Pierce suggested the implementation of a regulatory safe harbor that allows the SEC to implement and regulate projects on antifraud laws while providing a safe space for innovation to continue. “A regulatory safe harbor could resolve this unhappy dilemma,” she states.

“Affording a company like Unikrn a three-year regulatory window within which to further develop and refine its platform—while still subjecting it to the antifraud laws—would provide benefits to token purchasers, token issuers, and the Commission.”

She ended her statement calling for better regulation policies and experimentation of new approaches to prevent stifling of innovation within the U.S.

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Author: Lujan Odera

INX To Launch A $117M Security Token IPO; Will Use Funds to Develop Its Crypto Exchange

INX, a Gibraltar-based crypto exchange, would finally conduct the Initial Public Offering (IPO) on August 24 for its SEC-registered hybrid token.

The exchange aims to sell its hybrid token at $0.90 apiece ad raise nearly $111 million from the sale of 133 million tokens. The IPO would also be a first of its kind, given it is the first security offering registered with the US Security and Exchange Commission (SEC).

Before the current offering, almost all STOs only filed notices to the regulators and were mostly unregistered, which kept away institutional investors for fear of scams. The INX exchange’s upcoming IPO took almost two years.

The INX token is being called a hybrid because it would act like a utility and security token, where INX holders can utilize it for different operations on the exchange like paying the transaction fee, and the token would also double down as a form of the company share.

The firm revealed that the proceeds from the IPO would be utilized for INX’s regulated exchange INX Trading Solutions, a $62 million cash fund would also be kept separate for maintaining the platform in case of data breaches, trading execution errors or counterparty defaults.

The court filings submitted by INX exchange also revealed that President Shy Datika currently holds 7.25 of the total supply, which is around 9.4 million INX tokens.

Apart from the president, Doren Cohen, a CEO of the brokerage firm who is assisting the exchange conducting the IPO, i.e., A-Labs also holds around 4.55 million INX tokens and 9 of the ten companies on the advisory board would receive approximately 2 million tokens at a discounted price of $0.01 apiece.

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Author: James W

The Curious Case of the New Bubble in the ‘DeFi’ Town of Crypto

As in 2017, Initial Coin Offerings (ICO) was the craze in the crypto industry, in 2020, it’s decentralized finance (DeFi) that is rocking the world of crypto enthusiasts.

This year, DeFi has grown at a fast pace, with a record $3.5 billion value locked in this sector. Also, 4 million ETH are locked in these protocols.

Many argue that DeFi space is highly risky, which as we saw with numerous DeFi hacks this year, holds true. But at the same time, it is in its early stages, with innovations taking place every day. It is actually up to the community if it will be the start of something truly decentralized.

When it comes to decentralization, amidst the DeFi frenzy has emerged a new bubble “YFI” — a “completely valueless 0 supply token.”

The latest DeFi token that boasts of 1,000% yield as a result of a rapid spike in demand, but still yEarn has previously delivered annual returns of about 10% constantly for its lending pool.

The most interesting thing about this token by yEarn protocol (previously called iEarn) is that it started with $0 value but overnight skyrocketed to $2,500, driving $150 million of deposits, as ‘farming it’ yielded a whopping 1,000% annual returns for some traders.

Yearn Finance Chart
Source: CoinGecko

“Those of you in the old school who believe this is a bubble simply have not understood the new mathematics of one of the most fairly distributed project launched since BTC,” said analyst CL.

A yield aggregator, yEarn, redirects users’ deposits to lending markets with the best rates.

Unlike other projects where teams keep the majority of the token and in result voting power, the entirety of this protocol is in the hands of the community even though yEarn founder Andre Cronje shared In its official announcement that they want to give up control over its governance token “mostly because we are lazy.”

Yet another interesting aspect of this token is its supply, which the community is voting to cap at 30,000. These YFI tokens are distributed to those who deposit funds to yEarn pools, which soared by $150 million in just three days after the distribution first started.

The flow of money into its liquidity pool on the Curve DEX had the volume of yCurve surpassing $100 million.

Interestingly, yEarn’s unconventional approach has led the community to propose relocating tokens back to the founder. “If this proposal passes then it would be the one of the most legendary stories in crypto,” said analyst Qiao Wang.

Even the control of YFI has been put in a multi-signature wallet, which requires 6 out of 9 participants to agree on changes, and the founder Cronje is not a member of it.

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Author: AnTy

Polkadot’s Chain Candidate Goes Live in Anticipation for the Proof of Stake (PoS) Version

Polkadot’s initial mainnet has been launched by Web3 Foundation and Parity Technologies according to a blog post on May 26. This much anticipated sharding protocol has been in the works for around three years and is expected to facilitate the integration of blockchain networks.

The recently released live version is, however, centralized as it’s limited to some agents; Polkadot plans to hand over governance to its community once the testing period is over.

According to the announcement, Polkadot’s genesis block has already been mined marking the commencement of its first Chain Candidate (CC1). Notably, this platform was spearheaded by Gavin Wood, an Ethereum co-founder, who branched out to start Polkadot back in 2016 with Web3 Foundation as the lead developers. Wood now says the CC1 might as well be the mainnet,

“Polkadot’s first chain candidate (‘CC1’), which may well become the Polkadot mainnet, has been launched.”

Polkadot’s Mainnet Underlying Value

As highlighted earlier, the Polkadot initiative aims to link chains in a more seamless way for interoperability. Polkadot has, therefore, leveraged a Proof-of-Stake (PoS) algorithm in order to eliminate scalability challenges within its ecosystem through sharding. The blog reads,

“[Polkadot] connects several chains together in a unified network, allowing them to process in parallel and exchange data with strong security guarantees between chains. By parallelizing the workload, Polkadot solves major throughput issues.”

However, the CC1 which went live is currently under a Proof-of-Authority (PoA) consensus as Web3 foundation is in control of the network. As of now, the mainnet client users can receive DOT tokens and stake them to become or nominate validators within Polkadot’s network. Notably, the DOT digital assets were already in the secondary market as Simple Agreements for Future Tokens (SAFT) but will not be transferred within Polkadot’s live mainnet until its community votes to initiate a token transfer feature. Wood echoed that,

“During this phase, nothing will actually become at stake and no rewards will be paid, however once we move to the next stage, the community validators will be selected to maintain the network according to their overall DOT backing and our Proof-of-Stake system (NPoS) will be live. If you want to be in it from the start, then you’ll need to stake now.”

Polkadot’s Prospects

This project kicked off on a good note by issuing 5 million DOT tokens at $144 million back in 2016. By early 2019, the Polkadot was valued at $1.2 billion as per a Wall Street Journal Report. The company later sold another 500,000 DOT tokens towards the end of 2019 and is now making headlines with its much-awaited mainnet. Wood touts the project as a long-term player in the crypto industry,

“Polkadot is, in many respects, the biggest bet in this ecosystem against chain maximalism. Even if there were one perfect chain, I don’t think it would stay perfect for very long.”

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Author: Edwin Munyui

At 3M Monthly Users, KIN Has Outgrown the Forked Stellar Blockchain, Proposes Move to Solana

The Kin token, launched by the popular social messaging app – Kik – has been embroiled in controversy since its Initial Coin Offering (ICO) in 2017.

While the crypto token has been dealing with a protracted legal battle with the US Security and Exchange Commission (SEC), there have been several technical issues at its core.

Kin conducted its ICO on the Ethereum blockchain but clarified that it would make use of Ethereum for security purposes while the transactions would be validated on Stellar blockchain.

Later, they forked the Stellar blockchain to create a modified chain of their own. However, the hard-forked stellar chain is now proving inadequate for the Kin cryptocurrency. As a result, the digital currency would migrate to Solana blockchain in the coming month.

Kin also shared an improvement proposal regarding its move to the Solana blockchain, suggesting that while its operations saw great scalability on the forked stellar chain. There are certain limitations that have caused the disruption in running the network operations smoothly and thus they have decided to make a move to Solana.

Pointing to the issues they are facing on the forked stellar chain, the proposal read:

“While Stellar offers most of the features needed to do basic functions like sending Kin between accounts, there is a limited amount of space for metadata on transactions.

Stellar allows up to 30 bytes of metadata (called a ‘memo’) per transaction, which is far short of what Kin needs to perform its basic functions”

Talking about the benefits of the Solana blockchain, the proposal read:

“Solana solves both the latency and the feature set problems. Solana uses a Proof of History consensus model, along with a number of other novel innovations that unlock significant improvement in throughput and latency.

Additionally, Solana would allow significantly more metadata in transactions since it has a Virtual Machine implementation, offering more flexibility.”

The Proposed Transition

In order for the transition to be possible, the majority of the Kin developers have to agree with the move. If enough developers agree, Solana could facilitate the transition in a matter of months. This transition could be completed by Jan. 7, 2021.

Tanner Philp, head of corporate development at Kik said that Kin ecosystem has registered a massive uptick in the number of users in the past 6 months, and a significant rise in the core metrics during the ongoing coronavirus pandemic which has lead to severe lockdowns across the globe.

During the beginning of March when the world started to realize the severity of the COVID-19, the total users who have spent Kin token were evaluated to be around 1.5 million, however, the number jumped almost three times to 4.4 million by April 20th.

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Author: James W